Three Months Ended June 30, | |||||
2021 | 2020 | ||||
Skilled nursing occupancy | 66.5 | % | 71.2 | % | |
As a percent of total census: | |||||
Medicare census | 8.9 | % | 10.4 | % | |
Medicaid census | 69.1 | % | 67.3 | % | |
Managed Care census | 5.3 | % | 4.6 | % | |
As a percent of total revenues: | |||||
Medicare revenues | 16.8 | % | 19.0 | % | |
Medicaid revenues | 46.5 | % | 45.8 | % | |
Managed Care revenues | 10.9 | % | 10.4 | % | |
*Average rate per day: | |||||
Medicare | $ | 489.44 | $ | 495.34 | |
Medicaid | $ | 184.51 | $ | 181.52 | |
Managed Care | $ | 416.18 | $ | 423.54 | |
*Excludes COVID-19 stimulus payments |
Date:
|
Tuesday, August 10, 2021
|
Time:
|
4:00 P.M. Central, 5:00 P.M. Eastern
|
Webcast Links:
|
www.DVCR.com
|
Dial in numbers:
|
877.270.2148
Access Code: 10158409
The Operator will connect you to Diversicare's Conference Call.
|
June 30, 2021 |
December 31, 2020 | |||
(Unaudited) | ||||
ASSETS:
| ||||
Current Assets
| ||||
Cash
| $ | 25,429 | $ | 30,821 |
Receivables
| 50,946 | 53,691 | ||
Self-insurance receivables
| 928 | 1,025 | ||
Other current assets
| 6,438 | 11,724 | ||
Total current assets
| 83,741 | 97,261 | ||
Property and equipment, net
| 41,671 | 43,320 | ||
Acquired leasehold interest, net | 4,936 | 5,202 | ||
Operating lease right-of-use assets
| 275,422 | 290,296 | ||
Other assets
| 3,810 | 3,773 | ||
TOTAL ASSETS
| $ | 409,580 | $ | 439,852 |
LIABILITIES AND SHAREHOLDERS' DEFICIT:
| ||||
Current Liabilities
| ||||
Current portion of long-term debt and finance lease obligations
| $ | 1,684 | $ | 1,660 |
Trade accounts payable
| 14,849 | 13,901 | ||
Current portion of operating lease liabilities | 30,292 | 28,583 | ||
Accrued expenses:
| ||||
Payroll and employee benefits
| 13,548 | 15,393 | ||
Self-insurance reserves, current portion
| 13,533 | 12,665 | ||
Deferred income | 10,535 | 25,900 | ||
Other current liabilities
| 13,140 | 14,743 | ||
Total current liabilities
| 97,581 | 112,845 | ||
Noncurrent Liabilities
| ||||
Long-term debt and finance lease obligations, less current portion and deferred financing costs, net
| 57,859 | 58,526 | ||
Operating lease liabilities, less current portion
| 258,553 | 274,155 | ||
Self-insurance reserves, less current portion
| 13,519 | 15,476 | ||
Government settlement accrual
| 7,000 | 8,000 | ||
Other noncurrent liabilities
| 1,718 | 2,155 | ||
Total noncurrent liabilities
| 338,649 | 358,312 | ||
SHAREHOLDERS' DEFICIT
| (26,650) | (31,305) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT
| $ | 409,580 | $ | 439,852 |
Three Months Ended June 30, | ||||
2021 | 2020 | |||
PATIENT REVENUES, NET
| $ | 111,270 | $ | 118,243 |
OTHER OPERATING INCOME | 8,547 | 5,148 | ||
OPERATING EXPENSE
| 91,598 | 95,775 | ||
Facility-level operating income
| 28,219 | 27,616 | ||
EXPENSES:
| ||||
Lease and rent expense
| 13,264 | 13,523 | ||
Professional liability
| 1,484 | 2,114 | ||
General and administrative
| 6,976 | 6,880 | ||
Depreciation and amortization
| 2,374 | 2,278 | ||
Total expenses excluding operating expenses
| 24,098 | 24,795 | ||
OPERATING INCOME
| 4,121 | 2,821 | ||
OTHER INCOME (EXPENSE):
| ||||
Interest expense, net
| (1,087) | (1,209) | ||
Other income
| 174 | 409 | ||
Total other expense
| (913) | (800) | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
| 3,208 | 2,021 | ||
PROVISION FOR INCOME TAXES | (354) | (182) | ||
INCOME FROM CONTINUING OPERATIONS
| 2,854 | 1,839 | ||
LOSS FROM DISCONTINUED OPERATIONS | (360) | (387) | ||
NET INCOME
| $ | 2,494 | $ | 1,452 |
NET INCOME PER COMMON SHARE:
| ||||
Per common share - basic
| ||||
Continuing operations
| $ | 0.43 | $ | 0.28 |
Discontinued operations
| (0.05) | (0.06) | ||
$ | 0.38 | $ | 0.22 | |
Per common share - diluted
| ||||
Continuing operations
| $ | 0.42 | $ | 0.28 |
Discontinued operations
| (0.05) | (0.06) | ||
$ | 0.37 | $ | 0.22 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
| ||||
Basic
| 6,643 | 6,649 | ||
Diluted
| 6,752 | 6,704 |
Six Months Ended June 30, | ||||
2021 | 2020 | |||
PATIENT REVENUES, NET
| $ | 224,630 | $ | 238,230 |
OTHER OPERATING INCOME | 19,868 | 5,148 | ||
OPERATING EXPENSE
| 188,427 | 190,634 | ||
Facility-level operating income
| 56,071 | 52,744 | ||
EXPENSES:
| ||||
Lease and rent expense
| 26,513 | 27,036 | ||
Professional liability
| 3,567 | 3,953 | ||
General and administrative
| 13,741 | 13,638 | ||
Depreciation and amortization
| 4,669 | 4,565 | ||
Total expenses excluding operating expenses
| 48,490 | 49,192 | ||
OPERATING INCOME
| 7,581 | 3,552 | ||
OTHER INCOME (EXPENSE):
| ||||
Interest expense, net
| (2,109) | (2,669) | ||
Other income
| 213 | 524 | ||
Total other expense
| (1,896) | (2,145) | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
| 5,685 | 1,407 | ||
PROVISION FOR INCOME TAXES | (697) | (78) | ||
INCOME FROM CONTINUING OPERATIONS
| 4,988 | 1,329 | ||
LOSS FROM DISCONTINUED OPERATIONS | (606) | (630) | ||
NET INCOME
| $ | 4,382 | $ | 699 |
NET INCOME PER COMMON SHARE:
| ||||
Per common share - basic
| ||||
Continuing operations
| $ | 0.75 | $ | 0.21 |
Discontinued operations
| (0.09) | (0.1) | ||
$ | 0.66 | $ | 0.11 | |
Per common share - diluted
| ||||
Continuing operations
| $ | 0.74 | $ | 0.21 |
Discontinued operations
| (0.09) | (0.10) | ||
$ | 0.65 | $ | 0.11 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
| ||||
Basic
| 6,607 | 6,506 | ||
Diluted
| 6,746 | 6,586 |
Six Months Ended June 30, | ||||
2021 | 2020 | |||
NET INCOME
| $ | 4,382 | $ | 699 |
Discontinued operations
| (606) | (630) | ||
Net income from continuing operations
| 4,988 | 1,329 | ||
Adjustments to reconcile net income from continuing operations to cash (used in) provided by operating activities:
| ||||
Depreciation and amortization
| 4,669 | 4,565 | ||
Provision for self-insured professional liability, net of cash payments
| 120 | 494 | ||
Amortization of right-of-use assets | 13,903 | 11,286 | ||
Stock-based compensation
| 192 | 415 | ||
Provision for leases in excess of cash payments | 971 | 1,656 | ||
Other
| (232) | 602 | ||
Changes in assets and liabilities affecting operating activities: | ||||
Receivables | 2,841 | 8,049 | ||
Prepaid expenses and other assets | 2,603 | (189) | ||
Trade accounts payable and accrued expenses | (2,084) | 1,461 | ||
Deferred income | (15,365) | 25,320 | ||
Operating lease liabilities | (13,893) | (11,286) | ||
Cash (used in) provided by operating activities of continuing operations
| (1,287) | 43,702 | ||
Cash used in operating activities of discontinued operations
| (606) | (630) | ||
Cash (used in) provided by operating activities
| (1,893) | 43,072 | ||
Cash used in investing activities
| (3,058) | (2,775) | ||
Cash used in financing activities
| (441) | (13,926) | ||
Net (decrease) increase in cash
| (5,392) | 26,371 | ||
Cash beginning of period
| 30,821 | 2,710 | ||
Cash end of period
| $ | 25,429 | $ | 29,081 |
For Three Months Ended | ||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
| (Unaudited) | ||||||
Net income
| $ | 2,494 | $ | 1,888 | $ | 1,661 | $ | 2,799 | $ | 1,452 |
Loss from discontinued operations, net of tax
| 360 | 246 | 367 | 374 | 387 | |||||
Income tax provision (benefit)
| 354 | 343 | (818) | 209 | 182 | |||||
Interest expense
| 1,087 | 1,022 | 1,167 | 1,172 | 1,209 | |||||
Depreciation and amortization
| 2,374 | 2,295 | 2,406 | 2,098 | 2,278 | |||||
EBITDA
| 6,669 | 5,794 | 4,783 | 6,652 | 5,508 | |||||
EBITDA adjustments:
| ||||||||||
Debt retirement costs (a)
| - | - | 247 | - | - | |||||
Adjusted EBITDA
| $ | 6,669 | $ | 5,794 | $ | 5,030 | $ | 6,652 | $ | 5,508 |
Lease expense (b)
| $ | 13,264 | $ | 13,249 | $ | 13,441 | $ | 13,524 | $ | 13,523 |
(a) | Represents non-recurring debt retirement costs related to the amendment of our debt agreements in October 2020. |
(b)
|
As management, we evaluate EBITDA exclusive of lease expense, or EBITDAR, as a financial valuation metric. For the three month period ended June 30, 2021 EBITDAR is calculated below.
|
EBITDA | $ | 6,669 |
Lease expense | $ | 13,264 |
EBITDAR | $ | 19,933 |
For Three Months Ended | ||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||
Net income for Diversicare Healthcare Services, Inc. common shareholders
| $ | 2,494 | $ | 1,888 | $ | 1,661 | $ | 2,799 | $ | 1,452 |
Adjustments:
| ||||||||||
Debt retirement costs (a) | - | - | 247 | - | - | |||||
Discontinued operations, net of tax
| 360 | 246 | 367 | 374 | 387 | |||||
Adjusted net income for Diversicare Healthcare Services, Inc. common shareholders
| $ | 2,854 | $ | 2,134 | $ | 2,275 | $ | 3,173 | $ | 1,839 |
Adjusted net income for Diversicare Healthcare Services, Inc. common shareholders
| ||||||||||
Basic
| $ | 0.43 | $ | 0.33 | $ | 0.34 | $ | 0.48 | $ | 0.28 |
Diluted
| $ | 0.42 | $ | 0.32 | $ | 0.33 | $ | 0.48 | $ | 0.28 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
| ||||||||||
Basic
| 6,643 | 6,573 | 6,655 | 6,577 | 6,649 | |||||
Diluted
| 6,752 | 6,741 | 6,804 | 6,626 | 6,704 | |||||
(a) | Represents non-recurring debt retirement costs related to the amendment of our debt agreements in October 2020. |
DIVERSICARE HEALTHCARE SERVICES, INC. AND SUBSIDIARIES SELECTED OPERATING STATISTICS
(Unaudited)
| |||||||||||||||
Three Months Ended June 30, 2021
| |||||||||||||||
As of June 30, 2021 |
Occupancy (Note 2)
| ||||||||||||||
Region (Note 1) |
Licensed Nursing Beds
Note (4)
|
Available Nursing Beds
Note (4)
|
Skilled Nursing Weighted Average Daily Census
|
Licensed Nursing Beds
|
Available Nursing Beds |
Medicare Utilization | Revenue ($ in millions) |
Medicare Room and Board Revenue PPD (Note 3) |
Medicaid Room and Board Revenue PPD (Note 3) | ||||||
Alabama
| 2,385 | 2,318 | 1,805 | 75.7 | % | 77.9 | % | 8.7 | % | $ | 41.9 | $ | 462.31 | $ | 191.04 |
Kansas
| 464 | 464 | 304 | 65.6 | % | 65.6 | % | 10.1 | % | 7.6 | 515.10 | 235.38 | |||
Mississippi
| 1,039 | 1,004 | 748 | 72.0 | % | 74.5 | % | 11.6 | % | 18.3 | 474.71 | 199.53 | |||
Missouri
| 339 | 339 | 217 | 64.0 | % | 64.0 | % | 6.5 | % | 3.8 | 552.34 | 146.28 | |||
Ohio
| 403 | 393 | 371 | 92.1 | % | 94.5 | % | 7.0 | % | 6.9 | 545.98 | 191.89 | |||
Tennessee
| 775 | 709 | 412 | 53.1 | % | 58.0 | % | 15.1 | % | 12.8 | 483.10 | 195.14 | |||
Texas
| 1,845 | 1,662 | 961 | 52.1 | % | 57.8 | % | 5.3 | % | 20.0 | 544.21 | 148.65 | |||
Total
| 7,250 | 6,889 | 4,818 | 66.5 | % | 69.9 | % | 8.9 | % | $ | 111.3 | $ | 489.44 | $ | 184.51 |
Note 1:
|
The Tennessee region includes one nursing center in Indiana.
| ||||||||||||||
Note 2:
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The number of Licensed Nursing Beds is based on the licensed capacity of the facility. The Company has historically reported its occupancy based on licensed nursing beds, and excludes a limited number of assisted living, independent living, and personal care beds. The number of Available Nursing Beds represents licensed nursing beds less beds removed from service. Available nursing beds is subject to change based upon the needs of the facilities, including configuration of patient rooms, common usage areas and offices, status of beds (private, semi-private, ward, etc.) and renovations. Occupancy is measured on a weighted average basis.
| ||||||||||||||
Note 3:
|
These Medicare and Medicaid revenue rates include room and board revenues, but do not include any ancillary revenues related to these patients nor the Medicaid related stimulus of $5.8 million, state Coronavirus relief grants of $0.1 million and Medicare related stimulus of $8.5 recognized during the three months ended June 30, 2021.
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Note 4:
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The Licensed and Available Nursing Bed counts above include only licensed and available SNF beds.
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Disclaimer
Diversicare Healthcare Services Inc. published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 20:16:44 UTC.